<div class="block blog">
    <div class="block-title">
        <h2><?php echo Mage::getStoreConfig('blog/blog/title'); ?></h2>
    </div>
        <div class="block-content">
<?php if ($posts = $this->getRecent()): ?>
        <div class="menu-recent">
                <h5><?php echo Mage::helper('blog')->__('Recent Posts');?></h5>
                <ul>
                <?php foreach ($posts as $post): ?>
                        <li><a href="<?php echo $post->getAddress(); ?>" ><?php echo $post->getTitle();?></a></li>
                <?php endforeach; ?>
        </ul>
        </div>
<?php endif; ?>

<?php if($this->getCategories()->count() && Mage::getStoreConfig('blog/menu/category')): ?>
        <div class="menu-categories">
        <h5><?php echo Mage::helper('blog')->__('Categories');?></h5>
        <ul>
<?php $cats = $this->getCategories(); ?>
<?php foreach ($cats as $cat): ?>
                <li><a href="<?php echo $cat->getAddress(); ?>" ><?php echo $cat->getTitle();?></a></li>
<?php endforeach; ?>
        </ul>
        </div>
<?php endif;?>

                <?php echo $this->getChildHtml('blog_tags');?>
        </div>
</div>